Pennsylvania Act 2009-10 — BANKS AND BANKING (7 PA.C.S.) - MORTGAGE LOAN BUSINESS PROHIBITIONS

Act text

Session of 2009

No. 2009-10

SB 170

AN ACT

Amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, further providing for mortgage loan business prohibitions.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

Section 1. Section 6123(7) of Title 7 of the Pennsylvania Consolidated Statutes is amended to read:

§ 6123. Mortgage loan business prohibitions.

A licensee engaging in the mortgage loan business shall not:

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(7) In the case of a mortgage broker or mortgage originator, commit to close or close mortgage loans in its own name, service mortgage loans, enter into lock-in agreements or collect lock-in fees[,] or be or designate the exclusive recipient of notices or other communications sent from a lender or servicer to a consumer, provided, however, that a mortgage broker or mortgage originator can provide a lender's lock-in agreement to a consumer on behalf of that lender and collect lock-in fees payable to that lender on the lender's behalf.

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Section 2. This act shall take effect in 60 days.

APPROVED--The 29th day of June, A.D. 2009.

EDWARD G. RENDELL